Council adopts 2018-19 Budget revision
Explore Councils by state
Yarra Ranges Council has endorsed its revised Budget 2018-19 at a Council meeting on Tuesday, 11 December.
The revised budget was adopted by Councillors, following a minor error that occurred in the calculation of this year's rates.
This error was a result of incorrect valuation data provided by the Valuer General Victoria (VGV).
This has generated higher than expected rates income, which means that without reducing the rates levied Council would exceed the State Government’s rate cap.
Council understands the cost pressures facing households and is committed to ensuring that total rate revenue does not exceed the State Government rate cap of 2.25 per cent.
In line with this commitment, Council revised its 2018-19 Budget to correct the rate in the dollar.
Rate amounts for properties will be reduced accordingly. For 96 per cent of ratepayers, this reduction will equate to no more than $20.
All property owners will receive a letter outlining details about their revised rates bill. Any reduction will be reflected on the next rate or instalment notice.
If rates have been paid in full, a reduction will appear on next year's rates notice, or you are able to request a refund by contacting Council on 1300 368 333.
It is important to note that valuations that appear on rate notices are correct and are not affected.
How did the incorrect valuation data impact this year’s rates?
Each revaluation year, initial valuation data from the VGV is used to calculate the rate in the dollar for all properties in the municipality, to ensure Council can adopt its budget within legislative timeframes. Council then receives certified valuation data for 2018-19 in late June.
When applying the 2018-19 rates to properties in early July, council officers discovered that the final valuation data provided by the VGV was around 0.62 per cent higher than the initial data. This has generated higher than expected rates income.
Council has since raised this issue with the VGV and has also informed the Essential Services Commission.
Frequently asked questions:17 result(s) found
What is the issue? What is the issue? A minor error has occurred in the calculation of this year’s rates, as a result of incorrect initial valuation data provided by the Valuer General Victoria (VGV). This has generated higher than expected rates income which means that without reducing the rates levied Council would exceed the State Government’s rate cap. As a result, and in line with Council’s commitment to meeting the State Government’s 18-19 rate cap of 2.25 per cent, Council revised its 2018-19 budget to correct the rate in the dollar. Rate amounts for properties will be reduced accordingly. For 96 per cent of ratepayers, this reduction equates to no more than $20. How does property valuation data impact the amount I pay in rates? How does property valuation data impact the amount I pay in rates? Actual rates are calculated by applying the rate in the dollar (that is declared in the budget) to the final valuations that are provided by the VGV. How is the rate in the dollar calculated and how does this affect how much I pay? How is the rate in the dollar calculated and how does this affect how much I pay? In very general terms Council establishes its rate in the dollar by dividing the required rate revenue by the total value of all ratable properties in the municipality. The rate in the dollar is then multiplied by the value of a property to establish the amount to be paid by each property owner. This amount is known as the general rate. How did the incorrect valuation data impact this year’s rates? How did the incorrect valuation data impact this year’s rates? Each revaluation year, initial valuation data from the VGV is used to calculate the rate in the dollar for all properties in the municipality, to ensure Council can adopt its budget within legislative timeframes. Council then receives certified valuation data in late June to use to apply rates to all properties When applying the 2018-19 rates to properties in early July, Council Officers discovered that the final valuation data provided by the VGV was around 0.62 per cent higher than the initial data. This has generated higher than expected rates income. How will the rates charged be adjusted? How will the rates charged be adjusted? To change the declared rate in the dollar Council must revise its budget to ensure it complies with the Local Government Act. Council’s overall budget will not be impacted through this process. All that has changed is the rate in the dollar. Once the new rate in the dollar is applied, rates will be reduced accordingly. For 96 per cent of ratepayers, this reduction will equate to no more than $20. This reduction will be reflected on their next rate/instalment notice. Why wasn’t this reflected on the rate notice I received in August? Why wasn’t this reflected on the rate notice I received in August? After discovering the valuation data error, Council sought advice from solicitors, the VGV and the Essential Services Commission (who ensure compliance with the State Government’s rate cap) to determine what would be required for Council to legally change the rate in the dollar. To change the declared rate in the dollar Council needs to comply with the required process contained in the Local Government Act to revise the budget. This is a lengthy process, and could not be achieved in time for rate notices to be delivered before first instalment payments were due. I’ve paid my rates in full. How will the rate adjustment be processed for me? I’ve paid my rates in full. How will the rate adjustment be processed for me? The adjustment will be reflected on your next rate notice, or you can request a refund. I pay my rates monthly. How will the rate adjustment be processed for me? I pay my rates monthly. How will the rate adjustment be processed for me? Your remaining monthly instalments will be adjusted to reflect the change. Are the valuations on the rate notice correct? Are the valuations on the rate notice correct? Yes. The valuation on your rate notice has been certified by the Minister for Planning as correct. The rate adjustment is only minor. Why have you gone to the trouble of notifying me? The rate adjustment is only minor. Why have you gone to the trouble of notifying me? In line with Council’s commitment to ratepayers of meeting the State Government’s 2018/19 rate cap it was considered extremely important that all ratepayers were made aware of the change no matter how big or small. Who is responsible for managing general valuations for Yarra Ranges Council? Who is responsible for managing general valuations for Yarra Ranges Council? The State Government’s Valuer General Victoria (VGV) is responsible for managing the valuation process for this municipality. How did this happen? How did this happen? The VGV was unable to provide a conclusive reason why there was a 0.62% variation between initial and final valuations. However they did indicate that changes were being made to their valuation calculation software at the time the initial valuations were provided.